News Release

SCOTTSDALE, Ariz.--(BUSINESS WIRE)--
Magellan
Health, Inc. (NASDAQ:MGLN) today announced that it has entered into
an agreement to acquire Veridicus Holdings, LLC, a privately held
pharmacy benefit management (PBM) organization with a unique set of
clinical services and capabilities. Veridicus' differentiated approach
to pharmacy management leverages proprietary analytics and clinical
software that integrates pharmacy, medical and lab data to drive
targeted interventions resulting in better health outcomes and lower
costs for complex patient populations. In addition, Veridicus owns and
operates a fully licensed insurance company which is contracted with the
Centers for Medicare and Medicaid Services (CMS) and serves members
enrolled in the Medicare Part D Employer Group Waiver Plan (EGWP)
program.

Headquartered in Salt Lake City and founded in 2006, Veridicus has
approximately 130 employees. Veridicus serves a customer base with an
underlying PBM membership of approximately 225,000 lives, the majority
of which are under a long-term contract with a trust administering
benefits for participating employers. Upon the closing of this
acquisition, Doug Burgoyne, chief executive officer of Veridicus, and
the Veridicus team will join Magellan Rx Management.

"As Magellan Rx Management continues to differentiate itself in the
market by offering clinical management programs and a value-based
approach, Veridicus' programs and expertise will be a welcome addition,"
said Barry M. Smith, chairman and chief executive officer of Magellan
Health.

"I am pleased to welcome Veridicus and Doug Burgoyne to the Magellan Rx
Management team," said Mostafa Kamal, chief executive officer of
Magellan Rx Management. "This acquisition will build upon Magellan Rx
Management's clinically oriented approach to PBM services with
additional capabilities that further amplify our laser focus on
improving quality of care and outcomes for the patients we serve, while
reining in overall costs for payers. As we continue to solidify our
position as a value-based PBM, this acquisition makes a great deal of
strategic sense."

"Joining Magellan Rx Management right now is an exciting opportunity,
and I'm pleased to be able to bring Veridicus' expertise to Magellan,"
said Burgoyne. "Our 10 years of experience, as well as our position as
an industry leader in clinical care management on behalf of our
commercial and Medicare Part D clients, will align well with Magellan Rx
Management's vision and growth strategy."

The purchase price is $74.5 million to be paid at closing. Further
details will be provided on Magellan Health's 2017 Guidance Call, to be
held Tuesday, November 22, 2016.

Closing of the transaction is expected before the end of the year and is
not subject to the Hart-Scott-Rodino Act. However, the transaction is
subject to the approval of Utah state insurance regulators and other
customary closing conditions.

Magellan Rx Management is a full-service PBM that expands beyond
traditional core services to help its customers and members solve
complex pharmacy challenges by connecting them to the people, technology
and information they need to make smarter healthcare decisions. Magellan
Rx Management is leading the next evolution of PBMs with a value-driven
approach that moves past the traditional volume-focused thinking to
deliver true value-driven solutions, including targeted clinical
programs, powerful member and provider engagement strategies, advanced
analytics and expert specialty pharmacy management capabilities. As
pioneers in managing specialty spend both on the prescription and
medical benefit, Magellan Rx Management is effectively positioned to
continue delivering thought-leading solutions in this complex and
rapidly growing area of healthcare to help people live healthier lives.

About Magellan Health: Headquartered in Scottsdale, Ariz., Magellan
Health, Inc. is a leader in managing the fastest growing, most
complex areas of health, including special populations, complete
pharmacy benefits and other specialty areas of healthcare. Magellan
develops innovative solutions that combine advanced analytics, agile
technology and clinical excellence to drive better decision making,
positively impact health outcomes and optimize the cost of care for the
members we serve — all within a customer-first culture. Magellan's
customers include health plans and other managed care organizations,
employers, labor unions, various military and governmental agencies and
third-party administrators. For more information, visit MagellanHealth.com.

Cautionary Statement

This release contains forward-looking statements within the meaning of
the Securities Exchange Act of 1934 and the Securities Act of 1933, as
amended, which involve a number of risks and uncertainties. All
statements, other than statements of historical information provided
herein, may be deemed to be forward-looking statements including,
without limitation, statements regarding the expected completion of the
acquisition of Veridicus, enhancement of full-service pharmacy
management capabilities, opportunities for cross selling of services and
future growth. These statements are based on management's analysis,
judgment, belief and expectation only as of the date hereof, and are
subject to uncertainty and changes in circumstances. Without limiting
the foregoing, the words "believes," "anticipates," "plans," "expects,"
"may," "should," "could," "estimate," "intend" and other similar
expressions are intended to identify forward-looking statements. Actual
results could differ materially due to, among other things, the possible
election of certain of the company's customers to manage the health care
services of their members directly; changes in rates paid to and/or by
the company by customers and/or providers; higher utilization of health
care services by the company's risk members; delays, higher costs or
inability to implement new business or other company initiatives; the
impact of changes in the contracting model for Medicaid contracts;
termination or non-renewal of customer contracts; the impact of new or
amended laws or regulations; governmental inquiries; litigation;
competition; operational issues; health care reform; and general
business conditions. Additional factors that could cause actual results
to differ materially from those reflected in the forward-looking
statements include, but are not limited to, the risks discussed in the
"Risk Factors" section included within the company's Annual Report on
Form 10-K for the year ended December 31, 2015, filed with
the Securities and Exchange Commission on February 29, 2016, and the
company's subsequent Quarterly Reports on Form 10-Q filed during 2016.